The Central Apprenticeship Council has Proposed a 36% Increase in Stipends for Young Individuals: Implications for Students.

The Central Apprenticeship Council (CAC) on Monday recommended a 36% hike in apprenticeship stipend, applicable under the National Apprenticeship Promotion Scheme (NAPS) and National Apprenticeship Training Scheme (NATS).

The announcement was made during the 38th CAC meeting, chaired by Shri Jayant Chaudhary, Minister of State (Independent Charge) of the Ministry of Skill Development and Entrepreneurship (MSDE). The proposal is designed to bridge the gap between education and employment, reduce dropout rates and increase industry participation.

Central Apprenticeship Council: What is the new stipend structure?

Once recommendation approved, the stipend will increase from the current Rs 5,000-9,000 to Rs 6,800-12,300. This hike is aimed not only at reducing dropout rates but also improving the attractiveness of the programme and addressing financial limitations that prevent many from continuing their apprenticeship.

According to the statement issued, this upward revision will be automatically adjusted every two years based on the Consumer Price Index (CPI), which will align with national wage cycles and ensure that the stipend remains relevant in the face of inflation.

“The Central Apprenticeship Council’s stipend hike is a welcome move and a strategic investment in India’s human capital, directly addressing key challenges in apprenticeship growth and retention. This enhanced financial support enables more youth, especially those from non-metro cities, to fully commit to rigorous training, thereby reducing financial constraints that often lead to dropouts,” said Abhimanyu Saxena, Co-founder of Scaler, an online upskilling platform for working tech professionals focused on software engineering.

Improving accessibility and decreasing dropout rates:
The government’s initiative arises in response to ongoing worries regarding dropout rates and poor apprenticeship involvement. With India’s apprenticeship participation at merely 0.27% of the workforce, in compare to 3-4% in developed countries, financial support is seen as a crucial tool for improving retention and encouraging engagement.

“Despite considerable progress, India’s participation in apprenticeship programmes is still significantly low compared to international standards. Increasing stipends acts as a key motivator to attract and retain skilled individuals in training initiatives,” said Dr. Nipun Sharma, CEO, TeamLease Degree Apprenticeship, a collaborative effort between the public and private sectors that integrates academic learning with practical work experience.

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